Jefferies analyst Paul Zimbardo CFA has reiterated their bullish stance on TLN stock, giving a Buy rating yesterday.
Paul Zimbardo CFA has given his Buy rating due to a combination of factors that highlight Talen Energy Corp’s unique position in the market. One of the key reasons is Talen’s distinctive relationship with Amazon, being the only independent power producer to have a contract with an existing nuclear facility. This relationship is expected to evolve, potentially leading to a more favorable front-of-the-meter agreement, which could enhance Talen’s financial outlook.
Additionally, the analyst notes that Talen’s shares currently reflect little value from data center opportunities, suggesting significant upside potential. Despite recent declines in share price, the risk/reward scenario remains attractive, with a potential 43% upside if Talen successfully contracts its nuclear and gas assets. Furthermore, the company’s financial strategies, including debt reduction and share repurchases, are expected to improve leverage ratios, supporting the Buy recommendation.
In another report released yesterday, Morgan Stanley also maintained a Buy rating on the stock with a $243.00 price target.
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